Proceedings of ASBBS Volume 17 Number 1

A COMPARATIVE STUDY OF PROSPECTIVE

NATURAL GAS FOR VEHICLE (NGV) BUYERS’
BEHAVIOR INTENTION IN THAILAND

Likitsuwannakool, Nongnuch
All About Consumers Company Limited
nongnuch_ll@yahoo.com

Chaipoopirutana, Sirion
Graduate School of Business, Assumption University
sirionc@gmail.com

Combs, Howard
Lucas Graduate School of Business, San Jose State University
combs_h@cob.sjsu.edu

ABSTRACT
Global warming and the economic consequences of the global dependence on increasingly expensive
gasoline have become the most serious and appalling world problems of today. Natural Gas Vehicles
(NGV), currently in successful use in Thailand, have the potential to solve this problem in a relatively
pollution-free manner. The question is how to get more consumers to adopt this new form of energy?
This study examined how NGV’s can increase in popularity and obtain more consumer adoption in
Thailand. A survey of 500 potential consumers from various geographic regions and demographic groups
examined what factors impact on behavioral intention toward NGV. The results suggest that consumer’s
behavioral intentions toward NGV are affected by factors pertaining to social influences and certain
NGV attributes. Each group contains several sub-variables and is used in verifying its individual impact
on consumer’s behavioral intention, while the differences in vehicle factors did not strongly affect the
behavior intention. Recommendations for increasing the adoption rate of NGV in Thailand are provided.
The findings of this study can assist in the creation of more effective marketing appeals for NGV in
Thailand. Some of these finding could also be applicable to the task of encouraging current petroleum
gas users in other countries to switch to natural gas vehicles.

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INTRODUCTION
Global warming and continuing oil price increases have become the most serious and appalling issues of
the present day. These threatening crises are generally followed by arduous activity throughout the world,
particularly in searching for alter-native fuels with pollution-free proper-ties.

Thailand is at least fortunate enough to have such an alternative fuel as NGV (Natural Gas for Vehicles)
officially launched by PTT Company Ltd. It was launched to relieve the country’s trading loss from
import of expensive fuel and environmental problems. Although the number of NGV users has grown to
34,234 vehicles, the figure is still far below the target of 171,000 vehicles set by PTT in the second
quarter of 2007.

Buyer behavior intention scales are used to assess the possibility of consumer purchasing a product
(Schiff-man and Kanuk, 2007). It is important to study behavior intention in order to understand the
attitude of consumers and their evaluation of the consumption expectation toward NGV.

Basically, behavior intention occurs when the perception of the reward from the purchase of goods or
services by the consumer meets or exceeds his/her perceived sacrifice (Anderson, 1996; and Yi, 1988).
Therefore, it is very significant to analyze the relationship between geographic locations, demo-graphic
factors, vehicle factors, social influence, and NGV attributes, all of which influence the behavior intention
of car owners, in each of the five regions of Thailand.

The findings of this study can help in setting future marketing plans with better consumer appeals for
NGV. The benefits lie in helping Thailand to save on the imported costs of gasoline and also reducing air
pollution in the future.

LITERATURE REVIEW
From prior studies, the influential factors for alternative fuel are the vehicle factors which consist of type
of vehicle, life-time, type of engine, and engine power. They can be considered as real factors relating to
the NGV product (Byrne and Polonsky, 2001; Dearing, 2000; Berkowitz, Gallini, Miller, and Wolfe,
1985; Kazimi, 1997; Contadini, 2000; Dregfus and Viscusi, 1995).

Moreover, product attributes comprise many variables consisting of price perception cost of
setting/maintenance, product performance, product safety, availability, time consumption, credibility of
organization, information, and appearance are also employed by Byrne and Polonsky (2001); Dregfus and
Viscusi (1995); Dearing (2000) as main factors when the consumers make a decision to adopt alternative
fuel for transportation.

Whereas, the social influences, which are categorized into environ- mental concern, help country savings,
government support, and risk from the number of users, incorporate the consumer’s emotional experience
into the multi-attribute model has the potential of enhancing the predictability of motives and preferences
to better understand intention (Schiffman and Kanuk, 2007; Talukder, Harris and Mapunda, 2007; Byrne
and Polonsky, 2001; Follow and Jobber, 2005). Similar to the theory of reasoned action (TRA), intentions
are influenced by personal attitude judgment and social-normative considerations. These two factors may
not contribute equally to the formation of intention, but carry varying weights in influencing the
intentions.

Therefore, for this study, a new model of the behavior intention study toward NGV non-buyer behavior
was developed. This model is shown in Figure 1.

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CONCEPTUAL FRAMEWORK

Figure 1: The Conceptual Framework of a Comparative Study of Prospective

Natural Gas for Vehicle (NGV) Buyers’ Behavior Intention

Group A: Locations
- Central Area (Including Bangkok)
- Northern Area H1
- Northeastern Area
- Eastern Area
- Southern Area

Group B: Demographic Profiles

-Gender H2
-Age
-Personal income

Group C: Vehicles Factors

-Type of vehicle
-Life-time H3
-Type of engine Behavior intention
-Engine power

Group D: Social Influences (Attitude)

-Environmental concern H4
-Help country in savings
-Government support
-Risk from the number of users

Group E: NGV Attributes (Product Attributes)

-Price perception
-Cost of setting/maintenance
-Product performance
-Product safety H5
-Availability
-Time consuming
-Credibility of organization
-Information
-Appearance

RESEARCH HYPOTHESES
Twenty-one hypotheses were developed based on the research objectives and classified into five groups.
Group A, hypothesis 1 measures the difference between the geographical locations and behavior intention
of the car owners who are non-buyers of NGV. Group B, consisted of hypotheses 2-4 to measure the
difference between demographic factors and behavior intention.

Group C, comprised hypotheses 5-8 and measured the behavior intentions and various vehicle factors.
Group D, consisted of hypotheses 9-12 to analyze the relationship between social influence and behavior
intention. Group E, comprised hypotheses 13-21 to analyze the relationships between NGV attributes and
behavior intention. The hypotheses were as follows:

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Group A: To measure the difference between the consumer locations and the behavior intention:
H1 o : There is no difference in the behavior intention when segmented into separate consumer
locations

Group B: To measure the difference between demographic factors and behavior intention:
H2 o : There is no difference in the behavior intention when based on gender
H3 o : There is no difference in the behavior intention when segmented by age ranges
H4 o : There is no difference in the behavior intention when determined on personal income scale

Group C: To measure the behavior intention and various vehicle factors:

H5 o : There is no difference in the behavior intention when determined by types of vehicle
H6 o : There is no difference in the behavior intention when segmented by life-times of vehicle
H7 o : There is no difference in the behavior intention when based on engine types
H8 o : There is no difference in the behavior intention when determined by engine powers

Group D: To measure the correlation between social influences and behavior intention:
H9 o : Environmental concern has no relationship with behavior intention
H10 o : Help country in savings has no relationship with behavior intention
H11 o : Government support has no relationship with behavior intention
H12 o : Risk from the number of users has no relationship with behavior intention

Group E: To measure the correlation between NGV attribute and behavior:

H13 o : Price perception has no relationship with behavior intention
H14 o : Cost of setting/maintenance of vehicle has no relationship with behavior intention
H15 o : Product performance has no relationship with behavior intention
H16 o : Product safety has no relationship with behavior intention
H17 o : Availability of NGV has no relationship with behavior intention
H18 o : Time consuming of NGV has no relationship with behavior intention
H19 o : Credibility of organization has no relationship with behavior intention
H20 o : Information has no relation-ship with behavior intention
H21 o : Appearance has no relation-ship with behavior intention

RESEARCH METHODOLOGY
This study is envisaged as a descriptive research using a questionnaire as a survey method in collecting
data from vehicle owners who are NGV non-buyers and local residents (who are living in that area, work
at that area, or have a vehicle in that area) among the five regions of Thailand. Data was collected at
leading oil stations in each region. The model consists of five independent variables and one dependent
variable. Three non probability sampling techniques were applied in order to get the sampling unit for this
research study. The data was collected from 5 provinces which are the highest ranking provinces

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showing Thai people who have their own vehicles registered in each region of Thailand during 1997-2007
as shown in Table 1.

Table 1: The highest ranking provinces of Thais who have their own vehicles registered in each
region of Thailand during 1997-2007

Thai people who have own vehicles registered

in Thailand
Region Highest Rank Number Total of Region
(person)

Central Area Bangkok 2,283,536 3,188,482

Northern Chiang Mai 118,603 377,617

Area

Northeastern Nakhon 187,222 1,085,087

Area Ratchasima

Eastern Area Chonburi 201,754 534,564

Southern Songkhla 158,430 788,974

Area
Total 2,949,545 5,974,724
Percentage 50% 100%

Source: Land Transport Management Bureau, Department of Land Transport (12/12/2007)

The research questionnaire, consisting of sixty-one questions, divided into six parts was prepared in Thai
language, which is suitable for the understanding of respondents. The first part contained screening
questions which confirmed that the right target population was chosen. In the second part, respondents
were asked their demographic profiles. The third part, respondents were asked their own vehicle
characteristics and fuel consumption by using closed-ended question as adapted from Isarasaena-Na-
Ayutthaya, Rongviriyapanith, Vichearnsan, and Sanyaluklurchai (2006).

The fourth part, the social influence attitude has 13 questions based on five point Likert scale, ranging
from strongly disagree (1) to strongly agree (5) as adapted from Schiffman and Kanuk’s (2007). The fifth
part, NGV attributes consisted of 32 questions which are also based on Likert five point scales method
asking degree of agreement. In the last part, the researchers aimed to measure the level of consumers’
behavior intention in which a Likert 5 point scale was used ranging from definitely not (1) to definitely
(5). At the end of the survey there is an open-ended question for respondents to share their opinions and
suggestions about NGV.

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Table 2: Summary of Hypotheses Testing

Null Hypotheses Statements Significant Results of null

level Hypothesis testing
H1: There is no difference in the behavior intention when .000 Reject
segmented into separate consumer locations
H2: There is no difference behavior intention when based .286 Failed to reject
on gender
H3: There is no difference behavior intention when .014 Reject
segmented by age ranges
H4: There is no difference behavior intention when .006 Reject
determined by personal income scale
H5: There is no difference in the behavior intention when .386 Failed to reject
determined by types of vehicle
H6: There is no difference in the behavior intention when .203 Failed to reject
segmented by life-times of vehicle
H7: There is no difference in the behavior intention when .004 Reject
based on types of engines
H8: There is no difference in the behavior intention when .477 Failed to reject
determined by engine powers

H9: Environmental concern has no relationship with .000 Reject

behavior intention
H10: Help country in savings has no relationship with .000 Reject
behavior intention
H11: Government support has no relationship with behavior .000 Reject
intention
H12: Risk from the number of users has no relationship with .136 Failed to reject
behavior intention
H13: Price perception has no relationship with behavior .000 Reject
intention
H14: Cost of setting/maintenance of vehicle has no .000 Reject
relationship with behavior intention
H15: Product performance has no relationship with behavior .000 Reject
intention
H16: Product safety has no relationship with behavior .000 Reject
intention
H17: Availability of NGV has no relationship with behavior .000 Reject
intention
H18: Time consuming of NGV has no relationship with .000 Reject
behavior intention
H19: Credibility of organization has no relationship with .000 Reject
behavior intention
H20: Information has no relationship with behavior intention .000 Reject
H21: Appearance has no relationship with behavior intention .000 Reject

RESULTS AND CONCLUSION

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As shown in Table 2, sixteen out of twenty one null hypotheses in five groups were rejected. Hypotheses
two, five, six, eight, and twelve failed to reject. This means that there are differences in the consumer
behavior intention when determined by different living locations, age levels, and income levels whereas
there is no difference by gender. Also, there is a difference in the consumer behavior intention when
segmented by types of engines whereas types of vehicle, life-times of vehicle and engine powers are not
different. It can be concluded that the differences in most of the demographic characteristics lead to the
discrepancy in the consumer’s behavior intention towards NGV while differences in vehicle factors
hardly affects their behavior intention.

In addition, there are relationships between three variables in terms of social influence i.e. environmental
concern, help country in savings, and government support toward behavior intention, whereas risk from
the number of users variable has no relationship. It must be noted that all variables in the product
attributes i.e. price perception, cost of setting/maintenance of vehicle, product performance, product
safety, availability of NGV, time consuming, credibility of organization, information, and appearance
have a relationship with behavior intention. It is quite evident that consumers give a higher level of
importance to each of the product attributes than to each of the social influences.

RECOMMENDATIONS
It is very important to know more precisely the factors that affect consumers’ decision to adopt NGV in
order to succeed in encouraging additional consumers to adopt this alternative fuel. Therefore, the authors
recommend that NGV providers (such as PPT in Thailand) plan and implement additional strategies to
improve the effectiveness of their NGV operations.

The hypothesis testing results of groups A to C demonstrate that there are differences in demographic
factors (age levels and personal income levels) and vehicle factors (types of engine) which reflect
differences in adopton intention. For example, consumers who tend to adopt NGV tend to be mature
people aged 42 years old and up. According to a previous local journal (Marketeer, 2006), it has been
reported that the number of this age group are on the increase to an approximate 14 million or 20% of the
total Thai population. Moreover, the purchasing power of this group is 3 times higher than people in their
30s.

NGV providers should concentrate on such factors as safety and appearance that can convince people of
this group to make a decision to use NGV. These consumers tend to be concerned about their health and
their image. Thus, NGV providers have an opportunity to grow with this group in the future

In addition, consumers who have lower income tend to be particularly interested in adopting NGV due to
its low cost of use. Presently PTT has a suitable strategy for people of this group by promoting the low
price of NGV and giving loans with minimum interest rate for NGV instruments and setting that attract
low-income consumers. PTT might influence more consumers by other factors, such as giving discounts
or special promotion for installing NGV cylinders in their vehicles.

Although the results show that almost all the hypotheses have some minor relationships between each
variable of the social influences and NGV attributes towards the behavior intention, there are three
variables that deserve particular attention: product performance, product safety, and appearance. These
three factors seem to have the greatest influence on consumers’ behavior intention. Therefore, it is
suggested that NGV providers should concentrate on the product itself especially product performance,
product safety, and appearance to increase the number of NGV users.

For high impact factors, safety and quality control are of crucial concern to potential consumers. All
precautionary measures should be taken to avoid any occurrence of accidents, such as CNG tank
explosions, which are very effective in scaring people away from using NGV. NGV providers should

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arrange training programs on a regular basis for their installation and maintenance personnel to assure
their high quality and performance standard to the general public. At the same time, NGV providers
should establish a certain period of product warranty to ensure consumer satisfaction.

NGV providers such as PTT need to expand the NGV refueling infrastructure by focusing not only on
greater Bangkok but also on the provincial areas along the natural gas pipeline route as well as along the
super highways. NGV providers should not ignore potential consumers in other areas because they are
one of the main target groups. Hence, NGV providers should expand their operations such that the service
station refueling network covers a greater area. This would ensure potential NGV adopters of
convenience in refueling. NGV providers also need to expand the existing facilities in order to minimize
the time consumed at filling stations.

In terms of segmentation of vehicle’s engine types, diesel engine users are the main target of NGV
providers because this segment is the one with the highest intention to adopt. Therefore, PTT should
promote more in-use diesel-powered vehicle conversions. It is suggested that PTT promote NGV via
television’s transportation and technology programs in order to give information that can stimulate
increased use.

In terms of appearance, research and innovation should continue in a creative manner with an objective of
reducing the large size and heavy weight of current fuel NGV container cylinders. For other attribute
factors, the benefits of using NGV i.e. low price and sufficient infrastructure etc. must be guaranteed.
These will help boost the NGV in terms of sustainable development.

NGV providers should arrange seminar workshops on a periodical basis for disseminating correct
knowledge about NGV to the public. Then, the providers should utilize mass media to continuously
provide factual information on NGV products to avoid misunderstandings about NGV. Both measures
will enhance the good image of the product and the NGV providers. The NGV providers might also
participate in co-sponsorships for such programs as Drive Safely projects with NGV in order to increase
the consumer’s awareness.

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